Determinants Of Accounting Anxiety In Business Students

The identification of the level of anxiety, especially in accounting among business students, have not been directly explored and recognized. This empirical study was conducted to ascertain any significant determinants of accounting anxiety among business students. An online survey questionnaire was administered to all registered students at Bentley College, the largest business University in New England. A new accounting anxiety rating scale (AARS) was developed based on a modified computer anxiety rating scale (CARS) by Broome and Havelka (2002). A total of 1,112 responses were received and analyzed, indicating a response rate of 30 percent, which is relatively significant considering similar online survey responses. ANOVA tests were applied to determine the significance in accounting anxiety, controlling for four variables, academic majors, degree levels, experience and gender. The results show that there are significant differences in accounting anxiety levels in all four tests among students with different academic majors, degree levels, work experiences and significant difference in accounting anxiety between male and female students, contrary to recent and similar study of computer anxiety in business students

Audit effectiveness preceding bankruptcy in UK financial institutions

This study investigates audit effectiveness (or the lack thereof) of audit opinions issued by auditors preceding company bankruptcies. Data from all 26 bankrupt UK financial institutions were used to determine if auditors appropriately issued opinions other than unqualified, as signs of non-going concern, and any differences in audit-opinion effectiveness between international and domestic audit firms. Results show that unqualified opinions issued was significantly higher than other opinions prior to bankruptcy. While international audit firms were less likely to issue unqualified opinions than their domestic counterparts, no firm issued adverse or disclaimer of opinions in any given year, despite serious warning signals from return on assets (ROA), return on equity (ROE) and current ratios.audit effectiveness; bankruptcy; going concerns; audit opinion; UK financial institutions.

Information Risk in the International Currency Markets: Evidence from the Violation of UIRP

Drawing on the theoretical and empirical evidence that private information risk is priced in the expected returns of equities, we hypothesize that information risk premium is an important component of the risk premium that leads to the violation of uncovered interest rate parity (UIRP). Using an asset pricing model in which the risk factors are a world currency factor, a world equity factor, and a world private information factor, we find that UIRP is violated for 28 single currencies plus the euro and that violation is due to the existence of a significant time-varying risk premium. The component of the risk premium attributable to private information is economically large, statistically significant, and frequently dominates the component due to the world equity and currency factors, respectively. As far as we are aware, this is the first evidence that information risk is priced in assets other than equities and in the international financial markets. Together, the factors explain the average currency excess returns (alpha is equal zero) suggesting that, contrary to recent studies, UIRP is violated because investors require a risk premium on their currency deposits. We show that proxies for the country’s information environment explain the cross-sectional variation of exposures to private information risk